• Dycom Industries, Inc. Announces Fiscal 2023 Second Quarter Results

    المصدر: Nasdaq GlobeNewswire / 24 أغسطس 2022 05:00:21   America/Chicago

    Second Quarter Highlights

    • Contract revenues of $972.3 million; 23.5% growth
    • Non-GAAP Adjusted EBITDA of $104.7 million
    • Net Income of $43.9 million, or $1.46 per common share diluted
    • Repurchased 104,030 common shares for $10.0 million during the quarter

    PALM BEACH GARDENS, Fla., Aug. 24, 2022 (GLOBE NEWSWIRE) -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the second quarter ended July 30, 2022. Contract revenues were $972.3 million for the quarter ended July 30, 2022, compared to $787.6 million in the year ago period, an increase of 23.5%. Non-GAAP Adjusted EBITDA was $104.7 million, or 10.8% of contract revenues, for the quarter ended July 30, 2022, compared to $73.8 million, or 9.4% of contract revenues, in the year ago period.

    Net income was $43.9 million, or $1.46 per common share diluted, for the quarter ended July 30, 2022, compared to $18.2 million, or $0.59 per common share diluted, in the year ago period.

    During the quarter ended July 30, 2022, the Company purchased 104,030 shares of its own common stock in open market transactions for $10.0 million at an average price of $96.06 per share.

    Year-to-Date Highlights

    Contract revenues were $1.849 billion for the six months ended July 30, 2022, compared to $1.515 billion for the six months ended July 31, 2021. Contract revenues increased 22.3% organically after excluding $3.9 million of contract revenues from storm restoration services in the comparable year ago period. Non-GAAP Adjusted EBITDA was $168.4 million, or 9.1% of contract revenues, for the six months ended July 30, 2022, compared to $117.9 million, or 7.8% of contract revenues, in the comparable year ago period.

    Net income was $63.4 million, or $2.11 per common share diluted, for the six months ended July 30, 2022. These results include income tax benefits of $2.7 million, or $0.09 per common share diluted, for the vesting and exercise of share-based awards, and $1.7 million, or $0.05 per common share diluted, for tax credits related to a tax filing for a prior year. For the comparable year ago period, net income was $19.1 million, or $0.61 per common share diluted.

    During the six months ended July 30, 2022, the Company purchased 304,030 shares of its own common stock in open market transactions for $28.5 million at an average price of $93.85 per share.

    Outlook

    The Company expects contract revenues for the quarter ending October 29, 2022 to increase low- to mid-teens as a percentage of contract revenues as compared to the quarter ended October 30, 2021. Non-GAAP Adjusted EBITDA as a percentage of contract revenues is expected to increase modestly for the quarter ending October 29, 2022 as compared to the quarter ended October 30, 2021. For additional information regarding the Company’s outlook, please see the presentation materials available on the Company’s website posted in connection with the conference call discussed below.

    Use of Non-GAAP Financial Measures

    The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, the Company may use or discuss Non-GAAP financial measures, as defined by Regulation G of the Securities and Exchange Commission. See Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures in the press release tables that follow.

    Conference Call Information and Other Selected Data

    The Company will host a conference call to discuss fiscal 2023 second quarter results on Wednesday, August 24, 2022 at 9:00 a.m. Eastern time. Interested parties may participate in the question and answer session of the conference call by registering at https://register.vevent.com/register/BI8912ef4c95fa46e899173079528bf98f. Upon registration, participants will receive a dial-in number and unique PIN to access the call. Participants are encouraged to join approximately ten minutes prior to the scheduled start time.

    For all other attendees, a live listen-only audio webcast of the call, including an accompanying slide presentation, can be accessed directly at https://edge.media-server.com/mmc/p/nkn4jebu. A replay of the live webcast and the related materials will be available on the Company's Investor Center website at https://ir.dycomind.com for approximately 120 days following the event.

    About Dycom Industries, Inc.

    Dycom is a leading provider of specialty contracting services throughout the United States. These services include program management; planning; engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services for telecommunications providers. Additionally, Dycom provides underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities.

    Forward Looking Information

    This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. These
    statements include those related to the outlook for the quarter ending October 29, 2022 found under the “Outlook” section of this release. These statements are subject to change. Forward-looking statements are based on management’s current expectations, estimates and projections. These statements are subject to risks and uncertainties that may cause actual results for completed periods and periods in the future to differ materially from the results projected or implied in any forward-looking statements contained in this press release. The most significant of these risks and uncertainties are described in the Company’s Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) and include the duration and severity of a pandemic caused by COVID-19, our ability to comply with various COVID-19 legal and contractual requirements and the impacts that those requirements may have on our workforce and our ability to perform our work, vaccination rates in the areas where we operate, any worsening of the pandemic caused by increasing infection rates triggered by new variants, future economic conditions and trends including the potential impacts of an inflationary economic environment, customer capital budgets and spending priorities, the availability and cost of materials, equipment and labor necessary to perform our work, the adequacy of the Company’s insurance and other reserves and allowances for doubtful accounts, whether the carrying value of the Company’s assets may be impaired, the future impact of any acquisitions or dispositions, adjustments and cancellations of the Company’s projects, the related impact to the Company’s backlog from project cancellations, weather conditions, the anticipated outcome of other contingent events, including litigation, liquidity and other financial needs, the availability of financing, the Company’s ability to generate sufficient cash to service its indebtedness, restrictions imposed by the Company’s credit agreement, and the other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update forward-looking statements.

    For more information, contact:
    Callie Tomasso, Investor Relations
    Email: investorrelations@dycomind.com
    Phone: (561) 627-7171

    ---Tables Follow---

    DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands)
    Unaudited
        
     July 30, 2022 January 29, 2022
    ASSETS   
    Current assets:   
    Cash and equivalents$120,278 $310,757
    Accounts receivable, net 1,118,595  895,898
    Contract assets 45,715  24,539
    Inventories 98,883  81,291
    Income tax receivable 6,036  12,729
    Other current assets 44,296  30,876
    Total current assets 1,433,803  1,356,090
        
    Property and equipment, net 312,805  294,798
    Operating lease right-of-use assets 64,788  61,101
    Goodwill and other intangible assets, net 366,505  374,317
    Other assets 28,469  31,918
    Total assets$2,206,370 $2,118,224
        
    LIABILITIES AND STOCKHOLDERS’ EQUITY   
    Current liabilities:   
    Accounts payable$187,570 $155,896
    Current portion of debt 17,500  17,500
    Contract liabilities 16,170  18,512
    Accrued insurance claims 41,870  36,805
    Operating lease liabilities 25,352  24,641
    Income taxes payable —  233
    Other accrued liabilities 143,683  128,209
    Total current liabilities 432,145  381,796
        
    Long-term debt 815,332  823,251
    Accrued insurance claims - non-current 45,240  48,238
    Operating lease liabilities - non-current 39,276  36,519
    Deferred tax liabilities, net - non-current 62,373  55,674
    Other liabilities 14,988  14,202
    Total liabilities 1,409,354  1,359,680
        
    Total stockholders’ equity 797,016  758,544
    Total liabilities and stockholders’ equity$2,206,370 $2,118,224
        


    DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Dollars in thousands, except share amounts)
    Unaudited
            
     Quarter Quarter Six Months Six Months
     Ended Ended Ended Ended
     July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021
    Contract revenues$972,273  $787,568  $1,848,573  $1,515,065 
            
    Costs of earned revenues, excluding depreciation and amortization 797,980   651,367   1,543,710   1,271,378 
    General and administrative1 73,336   64,730   142,716   131,740 
    Depreciation and amortization 35,345   38,462   71,981   77,542 
    Total 906,661   754,559   1,758,407   1,480,660 
            
    Interest expense, net (9,347)  (9,334)  (18,465)  (15,211)
    Loss on debt extinguishment2 —   —   —   (62)
    Other income, net 2,587   986   7,381   3,703 
    Income before income taxes 58,852   24,661   79,082   22,835 
            
    Provision for income taxes3 14,996   6,496   15,690   3,772 
            
    Net income$43,856  $18,165  $63,392  $19,063 
            
    Earnings per common share:       
            
    Basic earnings per common share$1.48  $0.60  $2.14  $0.62 
            
    Diluted earnings per common share$1.46  $0.59  $2.11  $0.61 
            
    Shares used in computing earnings per common share:    
            
    Basic 29,540,174   30,431,143   29,579,498   30,553,381 
            
    Diluted 29,943,422   30,872,506   30,021,486   31,085,985 
            


    DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    TO COMPARABLE GAAP FINANCIAL MEASURES
    (Dollars in thousands)
    Unaudited
     
    CONTRACT REVENUES, NON-GAAP ORGANIC CONTRACT REVENUES, AND GROWTH %’s
              
     Contract
    Revenues -
    GAAP    		 Revenues
    from storm
    restoration
    services    		 Non-GAAP
    - Organic
    Contract
    Revenues    		 GAAP -
    Organic
    Growth %    		 Non-GAAP
    - Organic
    Growth %
    Quarter Ended July 30, 2022$972,273 $—  $972,273 23.5% 23.5%
              
    Quarter Ended July 31, 2021$787,568 $—  $787,568    
              
    Six Months Ended July 30, 2022$1,848,573 $—  $1,848,573 22.0% 22.3%
              
    Six Months Ended July 31, 2021$1,515,065 $(3,869) $1,511,196    


    NET INCOME AND NON-GAAP ADJUSTED EBITDA
            
     Quarter Quarter Six Months Six Months
     Ended Ended Ended Ended
     July 30, 2022 July 31, 2021 July 30, 2022 July 31, 2021
    Reconciliation of net income to Non-GAAP Adjusted EBITDA:       
    Net income$43,856  $18,165  $63,392  $19,063 
    Interest expense, net 9,347   9,334   18,465   15,211 
    Provision for income taxes 14,996   6,496   15,690   3,772 
    Depreciation and amortization 35,345   38,462   71,981   77,542 
    Earnings Before Interest, Taxes, Depreciation & Amortization ("EBITDA") 103,544   72,457   169,528   115,588 
    Gain on sale of fixed assets (3,467)  (992)  (8,856)  (3,844)
    Stock-based compensation expense 4,630   2,309   7,758   6,049 
    Loss on debt extinguishment2 —   —   —   62 
    Non-GAAP Adjusted EBITDA$104,707  $73,774  $168,430  $117,855 
    Non-GAAP Adjusted EBITDA % of contract revenues 10.8%  9.4%  9.1%  7.8%
            

    DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    TO COMPARABLE GAAP FINANCIAL MEASURES (CONTINUED)

    Explanation of Non-GAAP Financial Measures

    The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In the Company’s quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, it may use or discuss Non-GAAP financial measures, as defined by Regulation G of the Securities and Exchange Commission. The Company believes that the presentation of certain Non-GAAP financial measures in these materials provides information that is useful to investors because it allows for a more direct comparison of the Company’s performance for the period reported with the Company’s performance in prior periods. The Company cautions that Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. Management defines the Non-GAAP financial measures used as follows:

    • Non-GAAP Organic Contract Revenues - contract revenues from businesses that are included for the entire period in both the current and prior year periods, excluding contract revenues from storm restoration services. Non-GAAP Organic Contract Revenue change percentage is calculated as the change in Non-GAAP Organic Contract Revenues from the comparable prior year period divided by the comparable prior year period Non-GAAP Organic Contract Revenues. Management believes Non-GAAP Organic Contract Revenues is a helpful measure for comparing the Company’s revenue performance with prior periods.

    • Non-GAAP Adjusted EBITDA - net income before interest, taxes, depreciation and amortization, gain on sale of fixed assets, stock-based compensation expense, and certain non-recurring items. Management believes Non-GAAP Adjusted EBITDA is a helpful measure for comparing the Company’s operating performance with prior periods as well as with the performance of other companies with different capital structures or tax rates.

    Notes

    ________________________

    1 Includes stock-based compensation expense of $4.6 million and $2.3 million for the quarters ended July 30, 2022 and July 31, 2021, respectively, and $7.8 million and $6.0 million for the six months ended July 30, 2022 and July 31, 2021, respectively.

    2 During the six months ended July 31, 2021, the Company recognized a loss on debt extinguishment of $0.1 million in connection with the amendment and restatement of its credit agreement maturing in April 2026.

    3 Includes income tax benefits for the vesting and exercise of share-based of $0.1 million and $0.2 million for the quarters ended July 30, 2022 and July 31, 2021, respectively. The six months ended July 30, 2022 includes income tax benefits of $2.7 million for the vesting and exercise of share-based awards, and $1.7 million for tax credits related to a tax filing for a prior year. The six months ended July 31, 2021 includes income tax benefits for the vesting and exercise of share-based awards of $2.8 million.


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